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In 1865, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding some border land. Under British influence, a monarchy was set up in 1907; three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs and Bhutan allowed Britain to direct its foreign affairs. This role was assumed by independent India after 1947. Two years later, a formal Indo-Bhutanese accord returned the areas of Bhutan annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. A refugee issue of some 100,000 Bhutanese in Nepal remains unresolved; 90% of the refugees are housed in seven United Nations Office of the High Commissioner for Refugees (UNHCR) camps.
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Country
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Surface Area: 47,000 square km
Population: 2,185,569; note: other estimates range as low as 810,000 (July 2004 est.)
Located in: Southern Asia
Capital City: Thimphu
Head of State: King Jigme Singye WANGCHUCK
Prime Minister: Lyonpo Jigme Y. THINLEY
Independent since: 8 August 1949 (from India)
Currency: Ngultrum (BTN); Indian rupee (INR)
Flag (image): 
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